View source for HM Revenue and Customs

{{short description|Non-ministerial department of the UK Government}}
{{Redirect|HMRC|the ship prefix (His Majesty's Revenue Cutter)|List of Border Force cutters (UK)}}
{{Use British English|date=January 2015}}
{{Use dmy dates|date=October 2017}}
{{Infobox law enforcement agency
| agencyname        = HM Revenue and Customs<br><small>{{langx|cy|Cyllid a Thollau Ei Fawrhydi}}</small>
| patch             = 
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| logo              = [[File:HM Revenue & Customs.svg|frameless|upright=0.7|class=skin-invert]]
| logocaption       = 
| badge             = 
| badgecaption      = 
| flag              = 
| flagcaption       = 
| image_size        = 
| commonname        = 
| abbreviation      = 
| motto             = 
| formed            = {{Start date and age|df=yes|2005|04|18}}
| preceding1        = [[Inland Revenue]]
| preceding2        = [[HM Customs and Excise]]
| dissolved         = 
| superseding       = 
| employees         = 63,645<ref>{{citation|url=https://assets.publishing.service.gov.uk/media/67162aeb4a6b12291ed997cf/HMRC_headcount_and_payroll_data_for_September_2024.csv/preview|title=HMRC's headcount and payroll data for September 2024 - HM Revenue and Customs|access-date=19 November 2024|archive-date=18 March 2024|archive-url=https://web.archive.org/web/20240318171329/https://www.data.gov.uk/dataset/3e0f61b6-11b3-414d-84aa-8d93add7e028/workforce-management-information-hm-revenue-customs-and-valuation-office-agency/datafile/cb6e07af-2296-4268-a444-21ea721d1634/preview|url-status=live}}</ref> [[Full-Time Equivalent|FTE]]
| volunteers        = 
| budget            = {{currency| 7.4 billion|GBP||passthrough=yes}} (2023-24)<ref>{{cite web |title=HMRC Annual Report 2023-24 |url=https://assets.publishing.service.gov.uk/media/66a8ebc349b9c0597fdb0784/HMRC_annual_report_and_accounts_2023_to_2024.pdf |website=UK Government |access-date=28 December 2024}}</ref>{{rp|67}}
| country           = United Kingdom
| constitution1     = [[Commissioners for Revenue and Customs Act 2005]]
| speciality1       = customs
| speciality2       = tax
| headquarters      = [[100 Parliament Street]], [[Westminster]], London, England
| sworntype         = 
| sworn             = 
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| minister1name     = [[James Murray (London politician)|James Murray]]
| minister1pfo      = [[Exchequer Secretary to the Treasury]] and Departmental Minister for HMRC<ref>{{cite web | url=https://www.gov.uk/government/people/james-murray | title=James Murray MP }}</ref>
| chief1name        = [[John-Paul Marks]]
| chief1position    = Chief Executive
| chief2name        = Angela MacDonald
| chief2position    = Deputy Chief Executive
| parentagency      = 
| child1agency      = [[Valuation Office Agency]]<!-- up to | child7agency = -->
| anniversary1      = <!-- up to | anniversary6 = -->
| award1            = <!-- up to | award6 = -->
| website           = {{Official URL}}
| footnotes         = 
}}
{{UKtaxation}}

'''His Majesty's Revenue and Customs''' (commonly '''HM Revenue and Customs''', or '''HMRC''', and formerly '''Her Majesty's Revenue and Customs''')<ref name="Times 2022">{{cite news |url=https://www.thetimes.com/uk/royal-family/article/from-cash-to-customs-how-our-national-symbols-will-change-under-king-charles-tx2lmfcgf |title=From cash to customs: how our national symbols will change under King Charles |work=[[The Times]] |date=11 September 2022 |access-date=12 September 2022 |location=London |first=Liam |last=Kelly |archive-date=12 January 2023 |archive-url=https://web.archive.org/web/20230112173659/https://www.thetimes.co.uk/article/from-cash-to-customs-how-our-national-symbols-will-change-under-king-charles-tx2lmfcgf |url-status=live }}</ref><ref name="CRCA 2005">{{cite web | 
url=http://www.legislation.gov.uk/ukpga/2005/11/section/4 | title=Her Majesty's Revenue and Customs | publisher=legislation.gov.uk | work=Commissioners for Revenue and Customs Act 2005 | access-date=5 August 2012 | archive-date=23 December 2012 | archive-url=https://archive.today/20121223195836/http://www.legislation.gov.uk/ukpga/2005/11/section/4 | url-status=live }}</ref> is a  [[Departments of the United Kingdom Government|department]] of the [[UK government]] responsible for the [[tax collection|collection]] of [[Taxation in the United Kingdom|taxes]], the payment of some forms of [[Welfare state in the United Kingdom|state support]], the administration of other regulatory [[Regime#Politics|regimes]] including the [[national minimum wage]] and the issuance of [[national insurance]] numbers.

HMRC was formed by the merger of the [[Inland Revenue]] and [[HM Customs and Excise]], which took effect on 18 April 2005.<ref>{{cite web |url=http://www.hmrc.gov.uk/menus/aboutmenu.htm |title=HM Revenue and Customs: About Us |publisher=Hmrc.gov.uk |date=18 April 2005 |access-date=21 June 2009 |archive-date=29 June 2009 |archive-url=https://web.archive.org/web/20090629014050/http://www.hmrc.gov.uk/menus/aboutmenu.htm |url-status=live }}</ref> The department's logo is the [[Tudor Crown (heraldry)|Tudor Crown]] enclosed within a circle.

==Departmental responsibilities==
The department is responsible for the administration and collection of [[direct tax]]es including [[Income Tax]], [[United Kingdom corporation tax|Corporation Tax]], [[Capital Gains Tax]] (CGT) and [[Inheritance Tax]] (IHT), [[indirect tax]]es including [[Value Added Tax]] (VAT), [[excise duties]] and [[Stamp Duty Land Tax]] (SDLT), and environmental taxes such as [[Air Passenger Duty]] and the [[Climate Change Levy]]. Other aspects of the department's responsibilities include [[National Insurance]] Contributions (NIC), the distribution of [[Child Benefit]] and some other forms of state support including the [[Child Trust Fund]], enforcement of the National [[Minimum Wage]],<ref>{{Cite book|url=http://www.berr.gov.uk/files/file51198.pdf|title=BERR Summary: ONS – UK Company Statistics Reconciliation Project|date=January 2009|publisher=Department for Business, Enterprise and Regulatory Reform|archive-url=https://web.archive.org/web/20120226104012/http://www.berr.gov.uk/files/file51198.pdf|archive-date=26 February 2012}}</ref> administering anti-[[money laundering]] registrations for [[Money Service Business]]es<ref>{{cite web |url=http://www.hmrc.gov.uk/mlr/getstarted/intro.htm |title=Introduction to the Money Laundering Regulations |publisher=HMRC |access-date=29 January 2012 |archive-date=30 January 2012 |archive-url=https://web.archive.org/web/20120130224855/http://www.hmrc.gov.uk/mlr/getstarted/intro.htm |url-status=live }}</ref> and collection and publication of the trade-in-goods statistics.<ref>{{cite web |url=http://www.uktradeinfo.com |title=HM Revenue & Customs uktradeinfo – Home |publisher=Uktradeinfo.com |access-date=27 February 2012 |archive-url=https://web.archive.org/web/20120210193711/https://www.uktradeinfo.com/ |archive-date=10 February 2012 |url-status=dead }}</ref> Responsibility for the protection of the UK's borders passed to the [[UK Border Agency]] within the [[Home Office]] on 1 April 2008 and then to [[UK Border Force]] and the [[National Crime Agency]] in 2013; however, HMRC officers are also regularly deployed at the border to assist on operations.

HMRC is also a law enforcement agency, responsible for investigating and tackling tax fraud, excise (tobacco & alcohol) fraud, smuggling, money laundering and a number of other types of offences against the Treasury. The criminal investigation department is at the head of its Customer Compliance Group, known as Fraud Investigation Service (FIS).

==Powers of officers==
HMRC has a strong cadre of criminal investigators responsible for investigating Serious Organised Fiscal Crime. This includes all of the previous Customs criminal work (other than drug trafficking, but used to include this up until 2008) such as tobacco, alcohol, and oils smuggling.  They have aligned their previous Customs and Excise powers to tackle previous Inland Revenue criminal offences. Fraud Investigation Service are responsible for seizing (or preventing the loss of) billions of stolen pounds of [[Her Majesty's Government (term)|HMG]]'s revenue. Their skills and resources include the full range of intrusive and covert surveillance and they are a senior partner in the Organised Crime Partnership Board.

HMRC's criminal investigation department is Fraud Investigation Service (FIS). Officers deployed in their criminal investigation teams have the same powers as police officers, and have wide-ranging powers of arrest, entry, search and detention. HMRC have the power to apply for orders requiring information to be produced; apply for and execute search warrants; make arrests; search suspects and premises following arrest; and recover criminal assets through the Proceeds of Crime Act 2002. They also have extensive surveillance powers that authorised criminal investigation officers are trained to utilise.<ref>{{cite web |title=HMRC's criminal investigation powers and safeguards |url=https://www.gov.uk/government/publications/criminal-investigation/criminal-investigation |website=Gov.uk |access-date=20 July 2021 |archive-date=14 June 2020 |archive-url=https://web.archive.org/web/20200614183818/https://www.gov.uk/government/publications/criminal-investigation/criminal-investigation |url-status=live }}</ref>

The main power, under [https://www.legislation.gov.uk/ukpga/1979/2/section/138 section 138] of the Customs and Excise Management Act 1979 (as amended by [https://www.legislation.gov.uk/ukpga/1984/60/section/114 section 114] of the [[Police and Criminal Evidence Act 1984]]) is to arrest anyone who has committed, or whom the officer has reasonable grounds to suspect has committed, any offence under the Customs and Excise Acts<ref>{{cite web |url=https://www.legislation.gov.uk/ukpga/1979/2/section/138 |title=Section 138, Customs and Excise Management Act 1979 (c. 2) |publisher=Legislation.gov.uk |access-date=20 July 2021 |archive-date=12 January 2023 |archive-url=https://web.archive.org/web/20230112173518/https://www.legislation.gov.uk/ukpga/1979/2/section/138 |url-status=live }}</ref> as well as related fraud offences.

On 30 June 2006, under the authority of the new [[Labour Party (UK)|Labour]] [[home secretary]], [[John Reid, Baron Reid of Cardowan|John Reid]], extensive new powers were given to HMRC. Under chairman Sir David Varney, a new Criminal Taxes Unit of senior tax investigators was created to target suspected fraudsters and criminal gangs. To disrupt and clamp down on criminal activity. This HMRC/CTU would pursue suspects in the same way the [[US]] [[Internal Revenue Service]] caught out [[Al Capone]] on [[tax evasion]]. These new powers included the ability to impose penalties without needing to prove the guilt of suspected criminals; extra powers to use sophisticated surveillance techniques, and for the first time, to have the same ability as customs officers to monitor suspects and arrest them.<ref>Criminal taxes hit squad aims to give fraudsters the Al Capone treatment. ''The Guardian''. Philip Inman. 30 June 2006.</ref> On 19 July 2006, the executive chairman of HMRC, Sir David Varney resigned.<ref>Revenue Chief who oversaw tax credit debacle steps down. ''The Guardian''. Larry Elliot. 20 July 2006.</ref>

HMRC is also listed under parts of the British government which contribute to intelligence collection, analysis and assessment. Their prosecution cases may be co-ordinated with the [[police]] or the [[Crown Prosecution Service]].

== History ==
The merger of the Inland Revenue and HM Customs & Excise was announced by then [[chancellor of the Exchequer]] [[Gordon Brown]] in the [[budget]] on 17 March 2004. The name for the new department and its first executive chairman, [[David Varney]], were announced on 9 May 2004. Varney joined the nascent department in September 2004, and staff started moving from [[Somerset House]] and New Kings Beam House into HMRC's new headquarters building at [[Government Offices Great George Street|100 Parliament Street]] in [[Whitehall]] on 21 November 2004.

The planned new department was announced formally in the [[Queen's Speech]] of 2004 and a [[Bill (proposed law)|bill]], the Commissioners for Revenue and Customs Bill, was introduced into the [[British House of Commons|House of Commons]] on 24 September 2004, and received [[royal assent]] as the [[Commissioners for Revenue and Customs Act 2005]] on 7 April 2005. The Act also creates a [[Revenue and Customs Prosecutions Office]] (RCPO) responsible for the [[prosecution]] of all Revenue and Customs cases.

[[File:Government Offices Great George Street.jpg|thumb|Headquarters are at 100 Parliament Street, [[City of Westminster|Westminster]]]]
The old Inland Revenue and Customs & Excise departments had very different historical bases, internal cultures and legal powers. The merger was described by the ''[[Financial Times]]'' on 9 July 2004, as "mating the C&E terrier with the IR retriever".<ref>[http://search.ft.com/searchArticle?id=040709000415 The joys of crossing a terrier with a retriever] {{Webarchive|url=https://web.archive.org/web/20060512103722/http://search.ft.com/searchArticle?id=040709000415 |date=12 May 2006 }} (''[[Financial Times]]'', 9 July 2004, subscription required)</ref> For an interim period officers of HMRC are empowered to use existing Inland Revenue powers in relation to matters within the remit of the old Inland Revenue (such as [[income tax]], [[stamp duty]] and [[tax credits]]) and existing Customs powers in relation to matters within the remit of the old Customs & Excise (such as [[value added tax]] and [[excise duties]]). However, a major review of the powers required by HMRC was announced at the time of the 2004 [[pre-budget report]] on 9 December 2004, covering the suitability of existing powers, new powers that might be required, and consolidating the existing compliance regimes for surcharges, interest, penalties and appeal, which may lead to a single, consolidated enforcement regime for all UK taxes, and a consultation document was published after the 2005 budget on 24 March 2005. Legislation to introduce new information and inspection powers was included in the Finance Act 2008 (Schedule 36). The new consolidated penalty regime was introduced via the Finance Act 2007 (Schedule 24).
As part of the [[spending review]] on 12 July 2004, Gordon Brown estimated that 12,500 jobs would be lost as result of the merger by March 2008, around 14% of the combined headcount of Customs (then around 23,000) and Inland Revenue (then around 68,000).  In addition, 2,500 staff would be redeployed to "front-line" activities.  Estimates suggested this may save around £300 million in staff costs, out of a total annual budget of £4 billion.

[[File:HMRC.svg|thumb|Logo of HMRC until 2013]]
The total number of job losses included policy functions within the former Inland Revenue and Customs which moved into the [[HM Treasury|Treasury]], so that the Treasury became responsible for "strategy and tax policy development" and HMRC took responsibility for "policy maintenance". In addition, certain investigatory functions moved to the new [[Serious Organised Crime Agency]], as well as prosecutions moving to the new Revenue and Customs Prosecution Office.

A further programme of job cuts and office closures was announced on 16 November 2006.<ref>{{cite web|url=http://www.hmrc.gov.uk/local/transforming-hmrc.htm |title=HM Revenue & Customs:Transforming HMRC – The Regional Review Programme |publisher=Hmrc.gov.uk |access-date=21 June 2009 |url-status=dead |archive-url=https://web.archive.org/web/20090703103953/http://www.hmrc.gov.uk/local/transforming-hmrc.htm |archive-date=3 July 2009 }}</ref><ref>{{Cite web|url=https://www.gnn.gov.uk/environment/fullDetail.asp?ReleaseID=242751&NewsAreaID=2&NavigatedFromDepartment=False|title=HM Revenue & Customs announces consultation programme on the way forward|date=16 November 2006|website=gnn.gov.uk|archive-url=https://web.archive.org/web/20070728154137/https://www.gnn.gov.uk/environment/fullDetail.asp?ReleaseID=242751&NewsAreaID=2&NavigatedFromDepartment=False|archive-date=28 July 2007}}</ref> Whilst some of the offices closed were in bigger cities where other offices already exist, many were in local, rural areas, where there is no other HMRC presence.  Initial proposals indicated that up to 200 offices would close and a further 12,500 jobs lost from 2008 to 2011.<ref>{{cite news |url=http://politics.guardian.co.uk/unions/story/0,,1950358,00.html |title=Union fury over tax office cuts |work=The Guardian |date=17 November 2006 |access-date=21 June 2009 |location=London |first=Ashley |last=Seager |archive-date=24 November 2007 |archive-url=https://web.archive.org/web/20071124051358/http://politics.guardian.co.uk/unions/story/0,,1950358,00.html |url-status=live }}</ref><ref>{{cite web |last=Reed |first=Kevin |url=http://www.accountancyage.com/accountancyage/news/2168825/hmrc-senior-staff-concerned |title=HMRC senior staff concerned over further job cuts |publisher=Accountancy Age |date=16 November 2006 |access-date=21 June 2009 |archive-date=24 November 2007 |archive-url=https://web.archive.org/web/20071124043625/http://www.accountancyage.com/accountancyage/news/2168825/hmrc-senior-staff-concerned |url-status=live }}</ref>  In May 2009, [[job satisfaction|staff morale]] in HMRC was the lowest of 11 government departments surveyed.<ref>{{cite web |url=http://www.accountancyage.com/accountancyage/news/2245715/morale-among-hmrc-workers-falls |title=Morale among HMRC workers falls to new low |publisher=[[Accountancy Age]] |date=9 July 2009 |access-date=9 July 2009 |archive-date=10 July 2009 |archive-url=https://web.archive.org/web/20090710194151/http://www.accountancyage.com/accountancyage/news/2245715/morale-among-hmrc-workers-falls |url-status=live }}</ref>

In 2013, HMRC began to introduce an update to the [[PAYE]] system, which meant it would receive information on tax and employee earnings from employers each month, rather than at the end of a tax year. A trial of the new system began in April 2012, and all employers switched by October 2013.<ref>{{cite news |title=Tax system overhaul as real-time operation is tested |url=https://www.bbc.co.uk/news/business-17679846 |newspaper=BBC News |date=11 April 2012 |access-date=31 March 2013 |archive-date=15 June 2020 |archive-url=https://web.archive.org/web/20200615152228/https://www.bbc.co.uk/news/business-17679846 |url-status=live }}</ref>{{Update inline|date=October 2014}}

In 2012, [[Revenue Scotland]] was formed and on 1 April 2015 it took HMRC responsibility to collect [[devolved taxes in Scotland]].<ref>{{Cite web|url=http://www.accountingweb.co.uk/article/revenue-scotland-ready-replace-hmrc/570125|title=Revenue Scotland ready to replace HMRC for devolved taxes|last=Power|first=Rachael|date=2 January 2015|access-date=20 September 2016|archive-date=25 January 2016|archive-url=https://web.archive.org/web/20160125134317/http://www.accountingweb.co.uk/article/revenue-scotland-ready-replace-hmrc/570125|url-status=live}}</ref> In 2015 [[Welsh Revenue Authority]] was formed and on 1 April 2018 it took HMRC responsibility to collect devolved taxes in Wales.

On 12 November 2015, HMRC proposed to replace local offices with 13 regional centres by 2027.<ref>{{cite news |title=HMRC reveals tax office shake-up |url=https://www.bbc.com/news/business-34796299 |newspaper=BBC News |date=12 November 2015 |access-date=12 November 2015 |archive-date=29 December 2019 |archive-url=https://web.archive.org/web/20191229021445/https://www.bbc.com/news/business-34796299 |url-status=live }}</ref><ref>{{cite news |title=List of proposed HMRC office closures |url=https://www.bbc.com/news/business-34800243 |newspaper=BBC News |date=12 November 2015 |access-date=13 November 2015 |archive-date=18 July 2020 |archive-url=https://web.archive.org/web/20200718152959/https://www.bbc.com/news/business-34800243 |url-status=live }}</ref>

==Governance structure==
The board is composed of members of the executive committee and [[non-executive director]]s. Its main role is to develop and approve HMRC's overall strategy, approve final business plans and advise the chief executive on key appointments. It also performs an assurance role and advises on best practice.

The [[HM Treasury|Treasury minister]] responsible for HMRC is the [[James Murray (London politician)|James Murray]]

=== Chairman ===
The chairman of HMRC was an executive role until 2008. Mike Clasper served as a non-executive chairman. From August 2012, the post was abolished with a 'lead non-executive director' chairing board meetings instead.

* [[David Varney|Sir David Varney]] April 2005 – August 2006
* [[Paul Gray (civil servant)|Paul Gray]] (acting) September 2006 – February 2007 and (confirmed) February 2007 – November 2007
* [[Dave Hartnett|Dave Hartnett CB]] (acting) 2007 – 31 July 2008
* [[Mike Clasper]] CBE 1 August 2008 – 1 August 2012

=== Chief Executive ===
The chief executive is also the first [[permanent secretary]] for HMRC and the accounting officer.

* [[Lesley Strathie|Dame Lesley Strathie]] 2008–2011
* [[Lin Homer|Dame Lin Homer]] 2012–2016<ref>{{cite news|title=HMRC chief executive to quit post|url=https://www.bbc.co.uk/news/business-35281978|access-date=25 February 2016|publisher=BBC News|date=11 January 2016|archive-date=27 August 2020|archive-url=https://web.archive.org/web/20200827231140/https://www.bbc.co.uk/news/business-35281978|url-status=live}}</ref>
* [[Jon Thompson (civil servant)|Sir Jon Thompson]] 2016–2019<ref>{{Cite news|url=https://www.theguardian.com/politics/2019/jul/18/revenue-chief-quits-after-death-threats-over-brexit-warnings|title=Revenue chief who received death threats over Brexit steps down|last=O'Carroll|first=Lisa|date=2019-07-18|work=The Guardian|access-date=2020-02-03|language=en-GB|issn=0261-3077|archive-date=6 July 2020|archive-url=https://web.archive.org/web/20200706031532/https://www.theguardian.com/politics/2019/jul/18/revenue-chief-quits-after-death-threats-over-brexit-warnings|url-status=live}}</ref>
*[[Jim Harra|Sir Jim Harra]] 2019–present<ref>{{Cite web|url=https://www.taxjournal.com/articles/jim-harra-confirmed-as-new-hmrc-chief-executive|title=Jim Harra confirmed as new HMRC chief executive|website=Tax Journal|language=en|access-date=2020-02-03|archive-date=12 January 2023|archive-url=https://web.archive.org/web/20230112173526/https://www.taxjournal.com/articles/jim-harra-confirmed-as-new-hmrc-chief-executive|url-status=live}}</ref>

Executive chair and permanent secretary
* [[Edward Troup (solicitor)|Sir Edward Troup]] April 2016 – January 2018<ref>{{Cite web|url=https://www.gov.uk/government/publications/troup-edward-permanent-secretary-hm-revenue-and-customs-acoba-recommendation|title=Troup, Edward - permanent secretary, HM Revenue and Customs – ACOBA recommendation|website=GOV.UK|date=21 February 2019 |language=en|access-date=2019-09-22|archive-date=22 September 2019|archive-url=https://web.archive.org/web/20190922102856/https://www.gov.uk/government/publications/troup-edward-permanent-secretary-hm-revenue-and-customs-acoba-recommendation|url-status=live}}</ref>

===Non-executive board members===
Non-executive board members as of November 2019:<ref>{{Cite web|url=https://www.gov.uk/government/organisations/hm-revenue-customs/about/our-governance|title=Our governance|website=GOV.UK|language=en|access-date=2020-02-03|archive-date=6 July 2020|archive-url=https://web.archive.org/web/20200706151028/https://www.gov.uk/government/organisations/hm-revenue-customs/about/our-governance|url-status=live}}</ref>

* Mervyn Walker (lead non-executive director)
*Michael Hearty
*Simon Ricketts
*Alice Maynard
*Juliette Scott
*Paul Morton
*Patricia Gallan

==Personnel==
* [[Permanent secretary]]
* [[Director General#United Kingdom|Director general]]
* Director
* Deputy director
* Grade 6
* Grade 7
* Senior officer
* Higher officer
* Officer
* Assistant officer
* Administrative assistant
Source:<ref>{{cite web |url=https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/89045/salary-details-notes.pdf |title=Explanatory note on HMRC salaries and organisation charts |publisher=[[Government of the United Kingdom]] |archive-url=https://web.archive.org/web/20131016131549/https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/89045/salary-details-notes.pdf |archive-date=16 October 2013 |access-date=1 February 2017}}</ref>

See [[Civil Service (United Kingdom)#Grading schemes|civil service grading schemes]] for details.

HMRC's Criminal Investigators and Mobile Enforcement Officers deployed within Fraud Investigation Service are uniformed officers. HMRC Officers have the same powers as police officers, but their equivalent police ranks are at a higher grade (see table below):

{| class="wikitable" style="text-align:center"
|+HM Revenue and Customs rank badges of uniformed officers
|-
|'''Grade'''
|Senior Officer
|Higher Officer
|Officer
|Assistant officer
|-
|'''Police equivalent'''<ref>{{cite web |url=https://www.gov.uk/government/publications/criminal-investigation/criminal-investigation |title=Powers and safeguards |publisher=HM Revenue & Customs |archive-url=https://web.archive.org/web/20200614183818/https://www.gov.uk/government/publications/criminal-investigation/criminal-investigation |archive-date=14 June 2020 |access-date=1 February 2017}}</ref>
|Superintendent
|Inspector
&<br>Chief inspector
|Sergeant
|Constable
|-
|'''Badge'''
|[[Image:Generic-Navy-O5.svg|75px]]
|[[Image:Generic-Navy-O4.svg|75px]]
|[[Image:Generic-Navy-O3.svg|75px]]
|[[Image:Generic-Navy-O1.svg|75px]]
|}

Officers of HMRC's Mobile Enforcement Teams in Great Britain wear black polo shirts, gold braid epaulettes and trousers, while officers in Northern Ireland wear either white or navy shirts with gold braid epaulettes and navy trousers. Should further protection be needed, HMRC enforcement officers have the option of wearing heavy-duty fluorescent sludge jackets.<ref>{{cite web |title=Freedom of Information Act 2000 (FOIA) response |url=https://www.whatdotheyknow.com/request/hmrc_uniform/response/1733456/attach/3/IR2021%2000701%20D%20Schofield.pdf |website=whatdotheyknow |access-date=27 June 2025}}</ref>

==Performance==
[[File:HMRC estimated tax gaps 2005-2014.png|thumb|450px|HMRC estimated tax gaps 2005/6-2018/19 (the difference between the amount of tax that should, in theory, be collected by HMRC, against what is actually collected)<ref name=HMRC2020/>]]
HMRC collected £660 billion for the [[HM Treasury|Treasury]] in 2018/19.<ref name=HMRC2020>{{cite web|url=https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/907122/Measuring_tax_gaps_2020_edition.pdf |title=Measuring tax gaps 2020 edition}}</ref> It estimated that total theoretical tax liabilities in that year were £629 billion, but £31 billion was not collected due to the "[[Tax noncompliance|tax gap]]", made up of money lost to [[tax evasion]], [[tax avoidance]], error and unpaid tax debts. This equates to a collection rate of 95.3% (up from 92.7% in 2005-6).<ref name=HMRC2020/> At the end of March 2009, HMRC was managing 20 million 'open' cases (where the department's systems identify discrepancies in taxpayer records or are unable to match a return to a record) which could affect around 4.5 million individuals who may have overpaid in total some £1.6 billion of tax and a further 1.5 million individuals who may have underpaid in total some £400 million of tax.<ref>{{cite web|url=http://www.nao.org.uk/idoc.ashx?docId=be7fbf74-0675-4110-be7c-7d664aed6ecf&version=-1|title=HM Revenue and Customs 2008–09 Accounts: The Comptroller and Auditor General's Standard Report – National Audit Office (NAO)|work=National Audit Office|access-date=1 August 2009|archive-url=https://web.archive.org/web/20110607033715/http://www.nao.org.uk/idoc.ashx?docId=be7fbf74-0675-4110-be7c-7d664aed6ecf&version=-1|archive-date=7 June 2011|url-status=dead}}</ref>

HMRC guidance notes that flexible arrangements can be made, where necessary, to assist individuals and businesses who have unpaid tax debts. Such "Time to Pay arrangements", for example an agreed monthly payment schedule, are based on the debtor's specific financial circumstances and the guidance notes that no "standard" Time to Pay arrangement exists. Interest is payable on a Time to Pay arrangement.<ref>{{OGL-attribution|HMRC, [https://www.gov.uk/guidance/find-out-how-to-pay-a-debt-to-hmrc-with-a-time-to-pay-arrangement How to pay a debt to HMRC with a Time to Pay arrangement], updated 4 November 2021, accessed 31 December 2022}}</ref>

In 2007–08 HMRC overpaid tax credits to the value of £1 billion; at the end of March 2009, HMRC had £4.4 billion of overpayments to be recovered.<ref>{{cite web |url=http://www.nao.org.uk/publications/0809/hmrc_accounts.aspx |title=HM Revenue and Customs 2008–09 Accounts: The Comptroller and Auditor General's Standard Report |publisher=Nao.org.uk |date=20 July 2009 |access-date=27 February 2012 |archive-date=27 September 2011 |archive-url=https://web.archive.org/web/20110927013844/http://www.nao.org.uk/publications/0809/hmrc_accounts.aspx |url-status=dead }}</ref>

==Controversies==

===Child benefit records misplacement===
{{Main|2007 UK child benefit data misplacement}}
On 20 November 2007,  the [[Chancellor of the Exchequer]], [[Alistair Darling]], announced that two [[CD-R|discs]] that held the personal details of all families in the United Kingdom claiming [[child benefit]] had gone missing.<ref name="BBCDarlingAdmits25mRecordsLost">{{cite news|title=Darling admits 25m records lost|url=http://news.bbc.co.uk/1/hi/uk_politics/7103566.stm|access-date=20 November 2007|work=BBC News|date=20 November 2007|archive-date=5 September 2017|archive-url=https://web.archive.org/web/20170905134802/http://news.bbc.co.uk/1/hi/uk_politics/7103566.stm|url-status=live}}</ref> This is thought to affect approximately 25 million individuals and 7.5 million families in the UK. The missing discs include personal details such as name, date of birth, [[National Insurance]] number, and bank details.

Darling stated that there was no indication that the details had fallen into criminal hands; however, he urged people to monitor their bank accounts.<ref name="BBCDarlingAdmits25mRecordsLost" />

===IT problems===
[[Electronic Data Systems|EDS]] ran the Inland Revenue's tax and National Insurance system
from 1994 to 2004.<ref>{{cite news | url=http://news.bbc.co.uk/1/hi/business/3310189.stm | work=BBC News | title=Inland Revenue dumps IT provider | date=11 December 2003 | access-date=4 May 2010 | archive-date=10 August 2017 | archive-url=https://web.archive.org/web/20170810133459/http://news.bbc.co.uk/1/hi/business/3310189.stm | url-status=live }}</ref> In 2003, the launch of a new tax credit system led to over-payments of £2 billion to over two million people. EDS later paid £71.25 million in compensation for the disaster.<ref>{{cite web|url=https://www.theregister.co.uk/2009/01/07/eds_hmrc_tax_credit_fail/|title=EDS pays for tax failure|work=theregister.co.uk|access-date=10 August 2017|archive-date=10 August 2017|archive-url=https://web.archive.org/web/20170810140715/https://www.theregister.co.uk/2009/01/07/eds_hmrc_tax_credit_fail/|url-status=live}}</ref> In 2004, the contract was awarded to [[Capgemini]].<ref>{{cite web|author=Rebecca Thomas |url=http://www.uk.capgemini.com/aspire/ |title=Taxation &#124; Solutions |work=Uk.capgemini.com |access-date=27 February 2012 |url-status=dead |archive-url=https://web.archive.org/web/20101120160506/http://www.uk.capgemini.com/aspire/ |archive-date=20 November 2010 }}</ref> This contract, also with [[Fujitsu]] and [[BT Group|BT]], was one of the biggest ever IT outsourcing contracts, at a value of £2.6 billion.<ref>{{cite web |url=http://www.computerweekly.com/Articles/2009/10/30/238366/HMRC-renews-Aspire-deal-to-save-163110m.htm |title=HMRC renews Aspire deal to save £110m |work=Computerweekly.com |date=30 October 2009 |access-date=27 February 2012 |archive-date=13 June 2011 |archive-url=https://web.archive.org/web/20110613015553/http://www.computerweekly.com/Articles/2009/10/30/238366/HMRC-renews-Aspire-deal-to-save-163110m.htm |url-status=live }}</ref>

In February 2010, HMRC encountered problems following the implementation of their taxes modernisation program called Modernising Pay-as-you-Earn Processes for Customers (MPPC). The IT system was launched in June 2009 and its first real test came in a period known as annual coding. Annual coding issues certain codes to tax payers on a yearly basis. The annual coding process sent out incorrect tax coding notices to some taxpayers and their employers meaning that they would pay too much tax the following year.<ref>{{cite web |url=http://www.computerweekly.com/blogs/public-sector/2010/01/post-18.html |work=Computerweekly.com |title=HMRC benefits as new PAYE system issues wrong tax codes |access-date=9 November 2015 |archive-date=4 March 2016 |archive-url=https://web.archive.org/web/20160304071012/http://www.computerweekly.com/blogs/public-sector/2010/01/post-18.html |url-status=live }}</ref>

===Underpayments to ethnic minority claimants===
In August 2010, seven HMRC staff were sacked for deliberately underpaying benefits to ethnic-minority claimants.<ref>{{cite news
|url=https://www.bbc.co.uk/news/uk-northern-ireland-11011034
|access-date=18 August 2010
|title=HMRC staff sacked over race abuse
|work=BBC News
|date=18 August 2010
|archive-date=15 June 2020
|archive-url=https://web.archive.org/web/20200615155450/https://www.bbc.co.uk/news/uk-northern-ireland-11011034
|url-status=live
}}</ref>  Dave Hartnett, permanent secretary for tax at HMRC, said the department operates a zero-tolerance policy on racial discrimination.

===Goldman Sachs deal and surveillance of Osita Mba===

The [[whistleblower]] Osita Mba revealed to ''The Guardian'' that HMRC entered a deal with [[Goldman Sachs]] which allowed Goldman Sachs to escape paying £10 million interest on unpaid tax.{{citation needed|date=June 2020}} Following this HMRC used powers under the [[Regulation of Investigatory Powers Act]] (RIPA) "to examine the belongings, emails, internet search records and phone calls of their own solicitor, Osita Mba, and the phone records of his then wife" to find if he had spoken to the investigations editor of ''The Guardian'', [[David Leigh (journalist)|David Leigh]].<ref>{{cite news|url=https://www.theguardian.com/politics/2015/mar/26/hmrcs-use-of-powers-against-whistleblower-indefensible-say-mps?CMP=twt_gu|title=HMRC's use of powers against whistleblower 'indefensible', say MPs|author=Rajeev Syal|work=The Guardian|access-date=14 December 2016|archive-date=15 June 2020|archive-url=https://web.archive.org/web/20200615160612/https://www.theguardian.com/politics/2015/mar/26/hmrcs-use-of-powers-against-whistleblower-indefensible-say-mps?CMP=twt_gu|url-status=live}}</ref>

[[Member of Parliament|MP]]s in the House of Commons public accounts committee praised Osita Mba and called for scrutiny into HMRC's use of RIPA powers in a report. The report said: "We are deeply disappointed by HMRC's handling of whistleblowers. We consider that HMRC's use of powers reserved for tackling serious criminals against Mr Osita Mba was indefensible. HMRC told us that it had changed how it deals with whistleblowers and that it now provides information to its audit and risk committee who can use this to challenge how HMRC handles whistleblowers."<ref>{{cite web|url=http://www.parliament.uk/business/committees/committees-a-z/commons-select/public-accounts-committee/news/reports-taxation/|title=Effectiveness of tax reliefs, improving tax collection: reports published|work=UK Parliament|access-date=28 March 2015|archive-date=28 October 2016|archive-url=https://web.archive.org/web/20161028072350/https://www.parliament.uk/business/committees/committees-a-z/commons-select/public-accounts-committee/news/reports-taxation/|url-status=live}}</ref>

===Call waiting times===
In September 2015, a report from [[Citizens Advice]] highlighted frustration amongst callers to HMRC over long holding times. The report claimed that "thousands" of callers were waiting on average 47 minutes to have their call answered, often at considerable expense to the caller.<ref>{{cite news|url=https://www.bbc.co.uk/news/business-34195843|title=HMRC defends call waiting times of 47 minutes|work=BBC News|date=9 September 2015 |access-date=20 June 2018|archive-date=20 June 2020|archive-url=https://web.archive.org/web/20200620020646/https://www.bbc.co.uk/news/business-34195843|url-status=live}}</ref> HMRC alleged that the "unscientific and out-of-date survey of tweets" did "not represent the real picture" but said that 3000 extra staff had been taken on to respond to calls. A June 2015 report from the [[National Audit Office (United Kingdom)|National Audit Office]] indicated that the total number of calls answered by HMRC fell from 79% in 2013–14, to 72.5% in 2014–15; however, a subsequent report in May 2016 suggested that performance improved following the recruitment drive.<ref>{{cite web|url=https://www.nao.org.uk/wp-content/uploads/2016/05/The-quality-of-service-for-personal-taxpayers.pdf|title=The quality of service for personal taxpayers|work=National Audit Office|access-date=26 August 2017|archive-date=14 July 2020|archive-url=https://web.archive.org/web/20200714144141/https://www.nao.org.uk/wp-content/uploads/2016/05/The-quality-of-service-for-personal-taxpayers.pdf|url-status=live}}</ref>

=== European Commission on UK tax exemption ===
In November 2024, HM Revenue and Customs began refunding several major British companies, including firms listed on the [[London Stock Exchange]] and [[ITV (TV network)|ITV]], following a landmark ruling by the [[European Court of Justice]] (ECJ). This decision reversed a previous [[European Commission]] ruling from 2019 that classified a UK tax exemption as illegal state aid, requiring HMRC to collect additional taxes.<ref name=":0">{{Cite news |last1=Thomas |first1=Daniel |last2=O’Dwyer |first2=Michael |date=2024-11-10 |title=HMRC to hand back £700mn to top UK companies after EU tax ruling |url=https://www.ft.com/content/fae47a49-017e-4165-975f-3f79a0719474 |access-date=2024-11-11 |work=Financial Times}}</ref>

The tax exemption, applicable from 2013 to 2018, was designed to support British-based multinationals by exempting certain overseas financing activities from controlled foreign company (CFC) rules. These rules generally prevent companies from reducing tax liabilities by shifting profits to foreign subsidiaries. The exemption, initially introduced by former UK Chancellor George Osborne, aimed to make the UK a more attractive headquarters for large international corporations.<ref name=":0" />

The European Commission initially contended that this exemption provided undue benefits to British companies, constituting illegal state aid, and required the UK to collect back taxes. However, the final appeal in 2024 sided with the UK, allowing HMRC to refund the affected companies and marking a significant moment in the legal landscape for UK tax and state aid policy.<ref name=":0" /> 

==Revenue and Customs Digital Technology Services==
Revenue and Customs Digital Technology Services (RCDTS) is a subsidiary of HMRC established in 2015 to provide technical and digital services. The company works exclusively for HMRC and its employees are not [[civil servant]]s.<ref>HMRC, [https://www.gov.uk/government/publications/revenue-and-customs-digital-technology-services-gender-pay-gap-report-and-data-2021 Revenue and Customs Digital Technology Services: gender pay gap report and data 2021] {{Webarchive|url=https://web.archive.org/web/20220131051508/https://www.gov.uk/government/publications/revenue-and-customs-digital-technology-services-gender-pay-gap-report-and-data-2021 |date=31 January 2022 }}, published 27 January 2022, accessed 31 January 2022</ref> On 17 January 2022, HMRC announced its intention to wind up the company.<ref>[[Public and Commercial Services Union]], https://www.pcs.org.uk/news-events/news/hmrc-announces-rcdts-close {{Webarchive|url=https://web.archive.org/web/20230112173635/https://www.pcs.org.uk/news-events/news/hmrc-announces-rcdts-close |date=12 January 2023 }} HMRC announces RCDTS to close], published 17 January 2022, accessed 31 January 2022</ref>

==Recent investments==
HMRC has made a substantial investment of nearly £300 million to enhance its compliance and fraud investigation efforts. This funding has led to an increase in staffing within the Customer Compliance Group (CCG) and the Fraud Investigation Service (FIS). The CCG, responsible for enforcing tax compliance and addressing issues such as tax evasion, saw its workforce grow from 25,656 full-time equivalent staff (FTE) in November 2021 to a peak of 28,617 in October 2022, before stabilizing at 26,841 in October 2023. The FIS, which conducts both civil and criminal investigations into serious fraud cases, also experienced growth, increasing from 4,244 FTE in November 2021 to 4,956 by October 2022, although it slightly decreased to 4,735 by October 2023.
The financial commitment to the FIS is reflected in rising pay costs, which increased from £267.1 million in the 2021-2022 fiscal year to £288.8 million in 2022-2023, with an estimated expenditure of £286.2 million projected for 2023-2024. This investment underscores HMRC's ongoing dedication to protecting public revenue and ensuring tax compliance across the UK.
Yves Laffont, Sector Lead for Financial Crime Consulting Services at FDM Group, noted that HMRC's efforts serve as a model for businesses looking to strengthen their own fraud prevention teams. He emphasized the growing sophistication of fraudulent activities, including the use of artificial intelligence in scams. Laffont highlighted that fraud accounts for over 40% of recorded crimes in England but receives only 2% of police resources, which disproportionately affects vulnerable populations.
He further pointed out that tier 2 financial institutions are becoming prime targets for sophisticated criminal enterprises, posing risks to their customers. To combat these challenges effectively, Laffont advocates for rapid skill acquisition and holistic team development within organizations. He stresses the importance of establishing a risk management mindset and fostering adaptability to change as key components of successful fraud prevention strategies.<ref>{{Cite web | url=https://www.bbntimes.com/financial/hmrc-invests-almost-300m-in-compliance-and-fraud-staffing-to-combat-rising-fraud-threats| title=HMRC Invests almost £300m in Compliance and Fraud Staffing to Combat Rising Fraud Threats| newspaper=Bbntimes.com | accessdate=2024-12-09| last1=Yim| first1=Felix}}</ref>

==HMRC and fraud==
HMRC reports a significant increase in charity tax fraud cases across civil and [[criminal courts]]. The organisation is actively working to improve systems that prevent fraudulent access to charitable tax reliefs, recognising growing vulnerabilities in the [[Nonprofit organization|nonprofit]] sector.
The rise in court cases highlights systemic challenges facing charitable organisations, particularly around financial management and compliance. Common issues include outdated financial records, incorrect documentation of authorised officials, and improper gift aid claim submissions. These administrative failures often lead to rejected tax returns and potential legal scrutiny.
Despite these challenges, the charity sector remains predominantly compliant. HMRC is taking proactive steps to support organisations by developing more interactive guidance, utilising [[social media]] platforms, and creating clearer communication channels to help charities understand complex tax regulations.
Trustees of charitable organizations are strongly advised to seek professional financial guidance, especially when dealing with complex monetary matters. The increased legal actions serve as a warning to maintain rigorous financial controls and ensure accurate record-keeping.
The broader context suggests that while [[tax fraud]] in charities is a growing concern, HMRC's approach is focused on education and prevention rather than purely punitive measures. The goal is to strengthen the integrity of the charitable sector and protect legitimate nonprofit activities from potential financial misconduct.<ref>{{cite web | url=https://www.civilsociety.co.uk/news/increase-in-charity-tax-fraud-court-cases-and-prosecutions-hmrc-reports.html | title=Increase in charity tax fraud court cases and prosecutions, HMRC reports }}</ref>

==See also==
* [[HM Revenue and Customs Museum]]
* [[Government Offices Great George Street]]
* [[Revenue Scotland]]
* [[Tŷ William Morgan - William Morgan House]]
* [[Welsh Revenue Authority]]

==References==
{{Reflist|30em}}

==External links==
{{Commons category}}
* {{Official website}}
*[http://www.legislation.gov.uk/ukpga/2005/11 Commissioners for Revenue and Customs Act 2005]
*[https://web.archive.org/web/20050302005517/http://www.hm-treasury.gov.uk/newsroom_and_speeches/press/2004/press_96_04.cfm Treasury Press Release] (25 November 2004)

{{Non-police law enforcement agencies of the United Kingdom}}
{{HM Treasury}}
{{Departments of the United Kingdom Government}}
{{Economy of the United Kingdom}}
{{Customs services}}
{{Authority control}}

{{DEFAULTSORT:Hm Revenue And Customs}}
[[Category:HM Revenue and Customs| ]]
[[Category:Customs services]]
[[Category:Government agencies established in 2005]]
[[Category:National law enforcement agencies of the United Kingdom]]
[[Category:Non-ministerial departments of the Government of the United Kingdom]]
[[Category:Taxation in the United Kingdom]]
[[Category:2005 establishments in the United Kingdom]]
[[Category:Revenue services]]